Gold Falls as U.S. CPI Comes in as Expected


Gold futures on the COMEX division of the New York Mercantile Exchange fell slightly on Thursday as U.S. July consumer price index (CPI) came in broadly as expected.

The most active gold contract for December delivery fell 1.70 U.S. dollars, or 0.09 percent, to close at 1,948.90 dollars per ounce.

The U.S. Labor Department reported Thursday that U.S. CPI for all urban consumers increased 0.2 percent in July month on month, and rose 3.2 percent year on year, broadly in line with expectations.

In another report, the Labor Department reported that U.S. applications for unemployment benefits rose by 21,000 to 248,000 for the week ending Aug. 5, from 227,000 the week before. That’s the most in five weeks.

U.S. CPI figures are consistent with inflation moving lower toward the Federal Reserve’s 2-percent target as investors wait for July producer price index due out on Friday, market analysts hold. This kept gold trading within a tight range.

Silver for September delivery rose 9.00 cents, or 0.40 percent, to close at 22.821 dollars per ounce. Platinum for October delivery rose 22.10 dollars, or 2.48 percent, to close at 914.80 dollars per ounce.